HB 129-FISHERIES PROD DEVELOPMENT TAX CREDIT  11:01:13 AM CHAIR STUTES announced that the final order of business would be HOUSE BILL NO. 129, "An Act relating to the fisheries product development tax credit; providing for an effective date by amending the effective date of sec. 2, ch. 31, SLA 2022; and providing for an effective date." CHAIR STUTES noted that an amendment was offered to the bill and asked whether any of the committee members wanted a reintroduction to the bill. 11:02:38 AM REPRESENTATIVE MCCABE moved to adopt Amendment 1 to HB 129, labeled 34-LS0647\N.2, Bergerud/Bullard, 3/26/25, which read as follows: Page 1, following line 11: Insert new bill sections to read: "* Sec. 2. AS 43.75.037(c) is amended to read: (c) If the property for which a tax credit is claimed is installed on a vessel, the amount of qualified investment under (a) of this section is determined by multiplying the investment cost of the qualified investment property by a fraction, the numerator of which is the weight of raw macroalgae and raw eligible fish processed on the vessel by the taxpayer in the state in the tax year in which the property is first placed into service, and the denominator of which is the weight of raw macroalgae  and raw eligible fish processed on the vessel by the taxpayer in and outside of the state in the tax year in which the property is first placed into service. In this subsection, "eligible fish" does not include pollock, sablefish, or Pacific cod. * Sec. 3. AS 43.75.037(g) is amended to read: (g) If, during a tax year, property for which a credit was claimed under this section is disposed of by the taxpayer, ceases to be qualified investment property, or is removed from service in the state, the tax due under this chapter is increased by the recapture percentage of the aggregate decrease in the credit allowed under this section for all prior tax years that would have resulted solely from reducing to zero the credit allowed for the qualified investment property under this section. The amount of tax credit attributable to the qualified investment that is carried forward from prior tax years is terminated as of the first day of the tax year in which the qualified investment property is disposed of by the taxpayer, ceases to be qualified investment property, or is removed from service in the state. For purposes of this subsection, (1) the recapture percentage during the year in which the property is first placed into service or during the first year following the year in which the property is first placed into service is 100 percent; (2) the recapture percentage during the second year following the year in which the property is first placed into service is 75 percent; (3) the recapture percentage during the third year following the year in which the property is first placed into service is 50 percent; (4) the recapture percentage during the fourth or later year following the year in which the property is first placed into service is zero percent; (5) qualified investment property used on a vessel is considered to have been removed from the state on the first day of a tax year in which the proportion of raw macroalgae and raw eligible fish processed in the state on the vessel is less than 50 percent of total weight of raw macroalgae and raw eligible fish processed on the vessel in and outside of the state." Renumber the following bill sections accordingly. Page 2, line 16: Following "to": Insert "harvest or process macroalgae," Following "of": Insert "macroalgae or" Page 2, line 17: Delete "or used predominantly to" Insert ", or" Page 3, line 2: Delete "and" Insert "[AND]" Page 3, line 4, following "product;": Insert "and  (vii) equipment used to harvest or process  macroalgae;" Page 3, line 7, following "of": Insert "macroalgae or" Page 3, line 13, following "of": Insert "macroalgae or" 11:02:48 AM CHAIR STUTES objected for the purpose of discussion. 11:02:50 AM REPRESENTATIVE MCCABE said that Amendment 1 would expand the fisheries product development tax credit to support the harvest and processing of microalgae such as kelp. He said that as Alaska's mariculture industry continues to grow, this amendment would encourage fisheries businesses to invest in processing equipment and infrastructure specific to microalgae. It would ensure that this emerging sector can access the same economic development tools available to traditional fisheries. 11:03:43 AM CHAIR STUTES removed her objection to Amendment 1. There being no further objection, Amendment 1 was adopted. 11:03:58 AM REPRESENTATIVE EDGMON moved to report HB 129, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 129(FSH) was reported from the House Special Committee on Fisheries.